30-Second Overview
The electricity PSO Levy is charged to subsidise renewable energy generation in Ireland. It is reviewed annually by the energy regulator, with any changes becoming effective on October 1st each year. The levy is collected by your energy supply via electricity bills, and the amount charged is dependent on the meter's Maximum Import Capacity (MIC).
As such, it is important to make sure that your MIC is set correctly so that you do not overpay on electricity PSO charges or incur penalty charges for excess capacity.
⚡ If you are pressed for time and would like us to check your meter settings, just upload a recent electricity bill using the link below, and our energy experts will analyse it for free. No obligation for you, just saving insights 👇
What is The Electricity PSO Levy for Business Customers?
The electricity Public Service Obligation Levy (PSO) is charged on all electricity meters and supports the generation of electricity from sustainable and renewable sources. The levy is calculated and approved annually by the Commission for Regulation of Utilities (CRU), and all energy suppliers are required to collect this levy from customers.
What are the PSO levy rates?
- The amount of PSO you pay for your business premises is based on your Maximum Import Capacity (MIC).
- The current PSO levy rates for businesses from the 1st of October 2025 to the 30th of September 2026 are shown below.
- While the PSO levy is counter-cyclical in nature. It is lower when natural gas prices are high. Equally, it is higher when natural gas prices are low.
- High natural gas costs as a result of the Russian-Ukraine crisis meant that the PSO levy was a bill credit for 2022/2023.
Following a review of the Electricity PSO Levy for 2025/2026, the regulator has decided to implement the following charges:
| PSO Customer Category | Monthly Levy 2025/2025 (€ per customer) |
|---|---|
| Domestic | €1.46 |
| Small commercial (MIC < 30 kVA) | €5.65 |
| Medium/Large commercial (MIC ≥ 30 kVA) | €0.70/kVA |
Understanding The MIC and PSO Levy Relation
What is the Maximum Import Capacity (MIC)?
The meter Maximum Import Capacity (MIC) is the upper limit on the total electrical demand you can place on the electricity grid. It should be set high enough to meet the requirements of your business. Capacity is measured in kilovolt-amps (kVA), and each electricity connection has an MIC associated with it.
The electricity grid is designed to provide you with a stable electricity supply that is in accordance with a specified MIC. Business customers agree on a level with ESB Networks according to their specific requirements.
It is calculated based on:
- The total electrical load installed at your premises.
- The timing of the operation of this load.
Why is Your MIC Important?
This is the capacity of electricity which ESB Networks will commit to delivering to your premises.
- It places an upper limit on the total electrical load you can use.
- It is a determinant for network connection charges.
- It forms the basis for the Public Service Obligations (PSO) Levy.
If your MIC is too high or too low for your needs, it will cost you additional money.
- If the MIC is too high, you may be paying for more capacity than you require.
- If the MIC is too low, you may incur an 'Excess Capacity' charge.
- As a general guideline, it is suggested that your MIC should be set at 5% above your highest electrical load in the past year.
How to Estimate your MIC Requirements?
It is important that you choose the capacity that meets your needs to avoid unnecessary costs for your business.
💡 Example: As a general guide, an appropriate MIC = (Maximum Demand / 0.95) x 1.05 where 0.95 is the standard factor to convert kW to kVA, and 1.05 allows a 5% safety factor.
To assess if your MIC is set correctly, you should analyse a full year of electricity usage at your premises and check the actual demand used against your meter MIC setting. Also, check for Excess Capacity Charges on your bill. If these charges are significant, you should consider increasing your MIC.
If your contracted MIC is more than you need, you may be incurring unnecessary charges. If the demand is higher than the meter MIC setting over an extended period and you don't anticipate your demand changing in the near future, then you can consider a reduction in contracted MIC.
Once the bills have been analysed and the new MIC has been decided, you should fill out an ESB NC3 form.
How to Get the Best Commercial Electricity Deal?
The quickest and easiest way to find the best business energy deals is to speak to Utilityfair's energy experts.
We can find the best business electricity and business gas deal in a matter of minutes, and it's completely free.
- We will assess your current PSO charges against your MIC setting and energy usage.
- Our experts will ensure your MIC is correctly set to prevent you from overpaying on the electricity PSO levy.
- We compare all of the Irish suppliers in minutes, guaranteeing you are on the best possible electricity deal for your business.
- We keep track of your contract, preventing you from being automatically rolled into expensive rates.
👉 Get Started Today!
Fill out our enquiry form, click the link below or call 01 547 0999 to speak with a Utilityfair energy expert and start saving.
Frequently Asked Questions (FAQs)
The Public Service Obligation (PSO) levy is a charge mandated by the Irish government to support the generation of electricity from sustainable and renewable sources. It is calculated and approved annually by the CRU and is collected by all energy suppliers from their respective customers.
The PSO levy is determined based on your business's Maximum Import Capacity (MIC). From October 2024 to September 2025, the current rates are: for small businesses (<30 kVA) €12.91 per month; for medium/large businesses (≥30 kVA) €1.57 per kVA.
The Maximum Import Capacity (MIC) is the maximum electricity demand your business can have. The MIC is measured in kVA and is agreed with ESB Networks based on your business’s requirements. It must be set accurately, as if it’s set too high, your business may be paying for more capacity than needed (leading to higher PSO Levy charges). On the other hand, if it’s set too low, your business may incur ‘Excess Capacity’ charges if your demand exceeds the set MIC.
